PNB cuts savings deposits rate by 10 bps to 2.9%, effective Sept 1

Bank officials said the decision is partly driven by huge liquidity that the bank continues to manage and also correction in rates vis-a-vis peers, especially PSU banks

State-owned lender Punjab National Bank (PNB) has reduced savings deposit rates by 10 basis points to 2.90 per cent. This compares with deposit rate of 2.70 per cent and 2.75 per cent offered by State Bank of India (SBI) and Bank of Baroda (BoB), respectively.

The cut in the interest rate--effective from September 1--will be applicable on existing as well as new savings fund accounts, the lender said.

Bank officials said the decision is partly driven by huge liquidity that the bank continues to manage and also correction in rates vis-a-vis peers, especially public sector banks.

The lender has been